Aside from the equilibrium that Hotelling (1931) displayed, his model of non-renewable resources also contains a continuum of bubble equilibria. In all the equilibria the price of the resource rises at the rate of interest. In a bubble equilibrium, however, the consumption of the resource peters...

Several researchers have attempted to explain industry"shakeouts" (i.e., creative destruction episodes during which industryoutput continues to rise in spite of a high number of exiting firms), butcurrent models do not account for the fact that shakeout occurs earlier inindustries marked by...